Choose your structure
This decision affects what you can do with your business long-term.
Most founders default to Business Name because it sounds familiar — then discover it blocks them from raising investment or winning enterprise contracts. Read both options before choosing.
Business Name
Sole proprietorship · Enterprise
Best for — Solo founders, freelancers, simple service businesses not planning to raise money
Investors — Cannot issue shares or accept equity investment
Liability — You and the business are legally the same. Business debts are your personal debts.
Tax — Personal income tax applies once annual profit crosses ₦800,000
Scope — Tied to one specific business name. Each new business line needs a separate registration.
Private Limited Company
Ltd · RC number company
Best for — Founders with growth ambitions, teams, or anyone planning to raise money
Investors — Up to 50 shareholders. Issue shares. Accept equity. Give co-founders a stake.
Liability — The company is a separate legal entity. Your personal assets are protected.
Tax — Company Income Tax at 30%. Drops to 20% if turnover is under ₦25M. Zero if you qualify as a small company under the Finance Act.
Scope — One Private Limited company can run multiple business lines, products, and revenue streams without separate registrations.
Prestige — Required by most banks, enterprise clients, and investors for due diligence and contracts
Same price either way. You can upgrade from Business Name to Ltd later — but it requires a new registration and a new RC number.